Can creditors come after your inheritance after you file bankruptcy?
I declared bankruptcy about 2 years ago. My mother left me her house in her will. If she dies can my creditors take my inheritance?
I declared bankruptcy about 2 years ago. My mother left me her house in her will. If she dies can my creditors take my inheritance?
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If the debts were discharged by the bankruptcy, they legally no longer exist. That means unless you borrowed more AFTER the bankruptcy, you don’t HAVE creditors to come after the inheritance.
If you are still IN bankruptcy, the CREDITORS can’t come after ANYTHING. The bankruptcy court may be able to, but the creditors can’t.
August 12th, 2010 at 7:31 pmyou would need to ask your lawyer that one. my mom is also getting up there, but her house is in texas, so i would have no clue. i to had to file.
August 12th, 2010 at 7:31 pmOnce a debtor receives assets left to him, federal inheritance tax laws mandate that money and property be turned over to the courts for distribution to pay unpaid debts. Attempting to hide an inheritance after bankruptcy constitutes concealment of assets, a federal charge of bankruptcy fraud.
Edit: With that being said…
August 12th, 2010 at 7:31 pmThey’re not coming after you and your inheritance, They’re simply collecting what you owe them.
more data, pls.
is your mother still living? if so, the general answer is no and you may want to check your state’s laws for something oddly different [Louisiana law is oddly different -- among other places].
if she is not, when did she die? [before or after the effective date of your bankruptcy?] if it was afterward, probably not.
if your mother died before the effective date of your bankruptcy, you need an attorney’s opinion.
August 12th, 2010 at 7:31 pmtalk with your lawyer. It also depends on the type of BK.
August 12th, 2010 at 7:31 pmChances are they can’t "take the house", but depending on what type of bankruptcy filing, they could have some claim.
If you filed Chapter 7 bankruptcy, then your debt has already been written off (once the court signs on it), but if you filed Chapter 11 and still have a payment plan, they could ask that the plan be increased. Still, if you’re making regular payments, as agreed, they probably won’t mess with it. Just keep your payments up, and everything should be ok. There’s very little chance that they’d be able to take it from you.
On the other hand, if you haven’t figured out how to handle your money better by now, you’ll probably end up filing bankruptcy again 10 years from now, and at that time, they might take the house (unless you live in Florida or Texas where the house is not eligible).
August 12th, 2010 at 7:31 pm